Financial Management and Succession Planning in Islamic Cooperatives
DOI:
https://doi.org/10.68050/JAMS.2026.484Keywords:
Islamic cooperative societies, financial management, succession planning, institutional sustainabilityAbstract
The study examined financial management and succession in Islamic cooperatives in Nigeria through the lens of how financial governance practices and leadership continuity mechanisms affect cooperative societies' survival. The research was spurred by the fact that, despite the growth of Islamic cooperatives as a means of financial inclusion and socioeconomic development, financial management systems and succession plans remained issues that have persisted and jeopardised their sustainability. In particular, the study examined how these societies' financial management practices affected sustainability and institutional continuity, and how succession-planning mechanisms affected leadership continuity and institutional survival. The research used a qualitative analysis of documented evidence and existing scholarly literature on cooperative operations, governance, financial practices, and succession processes within ISI cooperatives. The findings showed that good financial management (through transparent reporting, resource mobilisation, accountability, and risk management) enhanced cooperatives' resilience. At the same time, poor succession planning created vulnerabilities, such as dependence on leadership and institutional instability. The study found a need to incorporate structured succession strategies with professional financial governance to develop sustainable Islamic cooperatives and improve governance. The results offer practical implications for cooperative managers, policymakers, and regulators, highlighting the need to institutionalize financial accountability, leadership development, and knowledge-transfer mechanisms in Islamic cooperative societies.
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